| Condensed Consolidated Statements of Operations (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Sales of products | $14,296 | $14,298 | $28,131 | $27,986 |
| Sales of services | 2,858 | 2,664 | 5,525 | 4,966 |
| Total revenues | 17,154 | 16,962 | 33,656 | 32,952 |
| Cost of products | (11,580) | (11,637) | (23,159) | (22,425) |
| Cost of services | (2,184) | (2,248) | (4,303) | (4,003) |
| Boeing Capital Corporation interest expense | (43) | (57) | (90) | (119) |
| Total costs and expenses | (13,807) | (13,942) | (27,552) | (26,547) |
| Gross Profit, Total | 3,347 | 3,020 | 6,104 | 6,405 |
| Income from operating investments, net | 70 | 65 | 102 | 123 |
| General and administrative expense | (925) | (835) | (1,716) | (1,610) |
| Research and development expense, net | (960) | (1,005) | (1,930) | (1,874) |
| (Loss)/gain on dispositions, net | (3) | 2 | (6) | 2 |
| Earnings from operations | 1,529 | 1,247 | 2,554 | 3,046 |
| Other income, net | 47 | 102 | 11 | 202 |
| Interest and debt expense | (80) | (50) | (137) | (96) |
| Earnings before income taxes | 1,496 | 1,299 | 2,428 | 3,152 |
| Income tax expense | (499) | (448) | (816) | (1,095) |
| Net earnings from continuing operations | 997 | 851 | 1,612 | 2,057 |
| Net (loss)/gain on disposal of discontinued operations, net of taxes of $3, ($4), $0 and ($1) | 1 | 1 | (4) | 6 |
| Net earnings | $998 | $852 | $1,608 | $2,063 |
| Basic earnings per share from continuing operations | 1.42 | 1.18 | 2.29 | 2.82 |
| Net (loss)/gain on disposal of discontinued operations, net of taxes | $0 | $0 | -0.01 | 0.01 |
| Basic earnings per share | 1.42 | 1.18 | 2.28 | 2.83 |
| Diluted earnings per share from continuing operations | 1.41 | 1.16 | 2.28 | 2.78 |
| Net (loss)/gain on disposal of discontinued operations, net of taxes | $0 | $0 | -0.01 | 0.01 |
| Diluted earnings per share | 1.41 | 1.16 | 2.27 | 2.79 |
| Cash dividends paid per share | 0.42 | 0.4 | 0.84 | 0.8 |
| Weighted average diluted shares (millions) | 707.4 | 732.8 | 707.8 | 740 |
| Condensed Consolidated Statements of Operations (Parenthetical) (USD $) | ||||
| In Millions | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Net (loss)/gain on disposal of discontinued operations, taxes | $0 | ($1) | $3 | ($4) |
| Condensed Consolidated Statements of Financial Position (USD $) | ||
| In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
| Assets | ||
| Cash and cash equivalents | $4,599 | $3,268 |
| Short-term investments | 171 | 11 |
| Accounts receivable, net | 6,588 | 5,602 |
| Current portion of customer financing, net | 463 | 425 |
| Deferred income taxes | 1,099 | 1,046 |
| Inventories, net of advances and progress billings | 17,200 | 15,612 |
| Total current assets | 30,120 | 25,964 |
| Customer financing, net | 5,969 | 5,857 |
| Property, plant and equipment, net of accumulated depreciation of $12,534 and $12,280 | 8,808 | 8,762 |
| Goodwill | 3,688 | 3,647 |
| Other acquired intangibles, net | 2,727 | 2,685 |
| Deferred income taxes | 3,858 | 4,114 |
| Investments | 1,188 | 1,328 |
| Pension plan assets, net | 21 | 16 |
| Other assets, net of accumulated amortization of $474 and $400 | 1,333 | 1,406 |
| Total assets | 57,712 | 53,779 |
| Liabilities and shareholders' equity | ||
| Accounts payable | 6,664 | 5,871 |
| Other accrued liabilities | 11,821 | 11,564 |
| Advances and billings in excess of related costs | 11,717 | 12,737 |
| Income taxes payable | 654 | 41 |
| Short-term debt and current portion of long-term debt | 416 | 560 |
| Total current liabilities | 31,272 | 30,773 |
| Accrued retiree health care | 7,336 | 7,322 |
| Accrued pension plan liability, net | 8,553 | 8,383 |
| Non-current income taxes payable | 1,182 | 1,154 |
| Other long-term liabilities | 335 | 337 |
| Long-term debt | 8,700 | 6,952 |
| Shareholders' equity: | ||
| Common shares, par value $5.00 - 1,200,000,000 shares authorized; shares issued - 1,012,261,159 and 1,012,261,159 shares | 5,061 | 5,061 |
| Additional paid-in capital | 3,561 | 3,456 |
| Treasury shares, at cost - 285,882,820 and 285,661,944 shares | (17,741) | (17,758) |
| Retained earnings | 23,668 | 22,675 |
| Accumulated other comprehensive loss | (13,120) | (13,525) |
| ShareValue Trust shares - 29,089,996 and 28,460,769 | (1,249) | (1,203) |
| Total Boeing shareholders' equity | 180 | (1,294) |
| Noncontrolling interest | 154 | 152 |
| Total shareholders' equity | 334 | (1,142) |
| Total liabilities and shareholders' equity | $57,712 | $53,779 |
| Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $) | ||
| In Millions, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
| Property, plant and equipment, accumulated depreciation | $12,534 | $12,280 |
| Other assets, accumulated amortization | $474 | $400 |
| Common shares, par value | $5 | $5 |
| Common shares, shares authorized | 1,200,000,000 | 1,200,000,000 |
| Common shares, shares issued | 1,012,261,159 | 1,012,261,159 |
| Treasury shares, shares | 285,882,820 | 285,661,944 |
| ShareValue Trust shares, shares | 29,089,996 | 28,460,769 |
| Condensed Consolidated Statements of Cash Flows (USD $) | ||
| In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Cash flows - operating activities: | ||
| Net earnings | $1,608 | $2,063 |
| Non-cash items - | ||
| Share-based plans expense | 121 | 98 |
| Depreciation | 666 | 643 |
| Amortization of other acquired intangibles | 99 | 81 |
| Amortization of debt discount/premium and issuance costs | 4 | 4 |
| Investment/asset impairment charges, net | 50 | 0 |
| Customer financing valuation provision | 12 | 80 |
| Loss/(gain) on disposal of discontinued operations | 7 | (10) |
| Loss/(gain) on dispositions, net | 6 | (2) |
| Other charges and credits, net | 78 | 78 |
| Excess tax benefits from share-based payment arrangements | (5) | (45) |
| Changes in assets and liabilities - | ||
| Accounts receivable | (1,215) | (129) |
| Inventories, net of advances and progress billings | (1,593) | (649) |
| Accounts payable | 804 | 1,022 |
| Other accrued liabilities | 262 | (406) |
| Advances and billings in excess of related costs | (1,030) | (1,166) |
| Income taxes receivable, payable and deferred | 921 | 275 |
| Other long-term liabilities | (20) | (149) |
| Pension and other postretirement plans | 586 | (281) |
| Customer financing, net | (262) | 278 |
| Other | 95 | (103) |
| Net cash provided by operating activities | 1,194 | 1,682 |
| Cash flows - investing activities: | ||
| Property, plant and equipment additions | (736) | (807) |
| Property, plant and equipment reductions | 23 | 16 |
| Acquisitions, net of cash acquired | (47) | (94) |
| Contributions to investments | (372) | (5,606) |
| Proceeds from investments | 286 | 6,238 |
| Purchase of distribution rights | 0 | (148) |
| Net cash used by investing activities | (846) | (401) |
| Cash flows - financing activities: | ||
| New borrowings | 1,843 | 5 |
| Debt repayments | (218) | (154) |
| Stock options exercised, other | 7 | 41 |
| Excess tax benefits from share-based payment arrangements | 5 | 45 |
| Employee taxes on certain share-based payment arrangements | (17) | 0 |
| Common shares repurchased | (50) | (2,064) |
| Dividends paid | (610) | (606) |
| Net cash provided/(used) by financing activities | 960 | (2,733) |
| Effect of exchange rate changes on cash and cash equivalents | 23 | 29 |
| Net increase/(decrease) in cash and cash equivalents | 1,331 | (1,423) |
| Cash and cash equivalents at beginning of year | 3,268 | 7,042 |
| Cash and cash equivalents at end of period | $4,599 | $5,619 |
| Condensed Consolidated Statement of Shareholders' Equity (USD $) | ||||||||
| In Millions | Common Stock
| Additional Paid-In Capital
| Treasury Stock
| ShareValue Trust
| Retained Earnings
| Accumulated Other Comprehensive Income [Member]
| Noncontrolling Interest
| Total
|
| Beginning Balance at Dec. 31, 2007 | $5,061 | $4,757 | ($14,842) | ($2,752) | $21,376 | ($4,596) | $74 | $9,078 |
| Net earnings | 2,672 | (2) | 2,670 | |||||
| Unrealized gain/(loss) on derivative instruments, net of tax of ($45) and $93 | (159) | (159) | ||||||
| Unrealized gain/(loss) on certain investments, net of tax of ($8) and $61 | (121) | (121) | ||||||
| Reclassification adjustment for losses realized in net earnings, net of tax of $(2) | 4 | 4 | ||||||
| Currency translation adjustment | (180) | (180) | ||||||
| Postretirement liability adjustment, net of tax of $(152) and $(4,883) | (8,565) | (8,565) | ||||||
| Share-based compensation and related dividend equivalents | 243 | (8) | 235 | |||||
| ShareValue Trust activity | (1,540) | 1,452 | (88) | |||||
| Excess tax pools | 99 | 99 | ||||||
| Treasury shares issued for stock options exercised, net | (9) | 53 | 44 | |||||
| Treasury shares issued for other share-based plans, net | (94) | 65 | (29) | |||||
| Treasury shares repurchased | (2,937) | (2,937) | ||||||
| Treasury shares transfer | (97) | 97 | ||||||
| Cash dividends declared ($0.84 and $1.62 per share) | (1,187) | (1,187) | ||||||
| SFAS 158 transition amount, net of tax of $50 | (178) | 92 | (86) | |||||
| Increase in noncontrolling interest | 80 | 80 | ||||||
| Ending Balance at Dec. 31, 2008 | 5,061 | 3,456 | (17,758) | (1,203) | 22,675 | (13,525) | 152 | (1,142) |
| Net earnings | 1,608 | 2 | 1,610 | |||||
| Unrealized gain/(loss) on derivative instruments, net of tax of ($45) and $93 | 79 | 79 | ||||||
| Unrealized gain/(loss) on certain investments, net of tax of ($8) and $61 | 12 | 12 | ||||||
| Currency translation adjustment | 82 | 82 | ||||||
| Postretirement liability adjustment, net of tax of $(152) and $(4,883) | 232 | 232 | ||||||
| Share-based compensation and related dividend equivalents | 124 | 124 | ||||||
| ShareValue Trust activity | 46 | (46) | ||||||
| Excess tax pools | 1 | 1 | ||||||
| Treasury shares issued for stock options exercised, net | (3) | 11 | 8 | |||||
| Treasury shares issued for other share-based plans, net | (63) | 56 | (7) | |||||
| Treasury shares repurchased | (50) | (50) | ||||||
| Dividends related to share-based plans payout | (5) | (5) | ||||||
| Cash dividends declared ($0.84 and $1.62 per share) | (610) | (610) | ||||||
| Ending Balance at Jun. 30, 2009 | $5,061 | $3,561 | ($17,741) | ($1,249) | $23,668 | ($13,120) | $154 | $334 |
| Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) (USD $) | |||
| In Millions, except Per Share data | Retained Earnings
| Accumulated Other Comprehensive Income [Member]
| Total
|
| Unrealized gain/loss on derivative instruments, tax | $93 | $93 | |
| Unrealized gain/loss on certain investments, tax | 61 | 61 | |
| Reclassification adjustment for losses realized in net earnings, tax | (2) | (2) | |
| Postretirement liability adjustment, tax | (4,883) | (4,883) | |
| Cash dividends declared, per share | 1.62 | 1.62 | |
| SFAS 158 transition amount, tax | 50 | 50 | 50 |
| Unrealized gain/loss on derivative instruments, tax | (45) | (45) | |
| Unrealized gain/loss on certain investments, tax | (8) | (8) | |
| Postretirement liability adjustment, tax | ($152) | ($152) | |
| Cash dividends declared, per share | 0.84 | 0.84 |
| Notes to Financial Statements | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| Summary of Business Segment Data | The Boeing Company and Subsidiaries Notes to Condensed Consolidated Financial Statements Summary of Business Segment Data (Unaudited) (Dollars in millions) Sixmonthsended June30 Threemonthsended June30 2009 2008 2009 2008 Revenues: Commercial Airplanes $ 16,985 $ 16,728 $ 8,431 $ 8,567 Integrated Defense Systems: Boeing Military Aircraft 6,373 6,467 3,363 3,265 Network and Space Systems 5,781 5,498 3,103 2,804 Global Services and Support 4,216 3,544 2,184 1,865 Total Integrated Defense Systems 16,370 15,509 8,650 7,934 Boeing Capital Corporation 330 364 167 179 Other 74 227 35 152 Unallocated items and eliminations (103 ) 124 (129 ) 130 Total revenues $ 33,656 $ 32,952 $ 17,154 $ 16,962 Earnings from operations: Commercial Airplanes $ 1,234 $ 1,760 $ 817 $ 777 Integrated Defense Systems: Boeing Military Aircraft 674 541 392 157 Network and Space Systems 446 504 239 237 Global Services and Support 465 452 245 243 Total Integrated Defense Systems 1,585 1,497 876 637 Boeing Capital Corporation 73 106 36 45 Other (69 ) (185 ) (46 ) (135 ) Unallocated items and eliminations (269 ) (132 ) (154 ) (77 ) Earnings from operations 2,554 3,046 1,529 1,247 Other income, net 11 202 47 102 Interest and debt expense (137 ) (96 ) (80 ) (50 ) Earnings before income taxes 2,428 3,152 1,496 1,299 Income tax expense (816 ) (1,095 ) (499 ) (448 ) Net earnings from continuing operations 1,612 2,057 997 851 Net (loss)/gain on disposal of discontinued operations, net of taxes of $3, ($4), $0 and ($1) (4 ) 6 1 1 Net earnings $ 1,608 $ 2,063 $ 998 $ 852 Research and development expense, net: Commercial Airplanes $ 1,370 $ 1,403 $ 659 $ 770 Integrated Defense Systems: Boeing Military Aircraft 287 240 157 115 Network and Space Systems 185 154 99 78 Global Services and Support 84 75 50 41 Total Integrated Defense Systems 556 469 306 234 Other 4 2 (5 ) 1 Total research and development expense, net $ 1,930 $ 1,874 $ 960 $ 1,005 This information is an integral part of the Notes to Condensed Consolidated Financial Statements. See Note 14 for further segment results. |
| Note 1 - Basis of Presentation | Note 1 Basis of Presentation The condensed consolidated interim financial statements included in this report have been prepared by management of The Boeing Company (herein referred to as Boeing, the Company, we, us, or our). In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation are reflected in the interim financial statements. We have evaluated subsequent events through July22, 2009, which is the date that these financial statements were issued. The results of operations for the period ended June30, 2009, are not necessarily indicative of the operating results for the full year. The interim financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto included in our 2008 Annual Report on Form 10-K. Certain amounts have been reclassified to conform to the current periods presentation. Effective January1, 2009, we adopted Statement of Financial Accounting Standards (SFAS) No.160, Noncontrolling Interests in Consolidated Financial Statements an amendment of ARB No.51 (SFAS No.160). SFAS No.160, which was retrospectively applied, requires the noncontrolling interest to be separately presented as a component of shareholders equity on the Condensed Consolidated Statements of Financial Position and Shareholders Equity. |
| Note 2 - Earnings Per Share | Note 2 Earnings Per Share The weighted average number of shares outstanding used to compute earnings per share are as follows: (Shares in millions) Sixmonthsended June30 Threemonthsended June30 2009 2008 2009 2008 Weighted average shares outstanding 701.7 723.7 701.3 717.4 Participating securities 3.5 8.4 3.8 8.3 Basic weighted average shares outstanding 705.2 732.1 705.1 725.7 Dilutive potential common shares 2.6 7.9 2.3 7.1 Diluted weighted average shares outstanding 707.8 740.0 707.4 732.8 Basic earnings per share is calculated by the sum of (1)net earnings less declared dividends and dividend equivalents related to share-based compensation divided by the basic weighted average shares outstanding and (2)declared dividends and dividend equivalents related to share-based compensation divided by the weighted average shares outstanding. The weighted average number of shares outstanding, included in the table below, is excluded from the computation of diluted earnings per share because the average market price did not exceed the exercise/threshold price. However, these shares may be dilutive potential common shares in the future. (Shares in millions) Sixmonthsended June30 Threemonthsended June30 2009 2008 2009 2008 Stock options 17.7 9.5 24.8 11.2 ShareValue Trust 13.0 12.6 13.0 12.6 Performance Awards 4.8 5.3 4.8 5.3 Performance Shares 0.8 0.7 0.8 0.7 Stock units 0.3 0.3 |
| Note 3 - Income Taxes | Note 3 Income Taxes The effective tax rates were 33.6% and 33.4% for the six and three months ended June30, 2009 and 34.7% and 34.5% for the same periods in the prior year. The decrease in the effective tax rates was primarily due to Research and Development tax credit benefits that exist in 2009, but did not exist as of the second quarter of 2008, partially offset by state income tax charges. The years 2004-2006 are currently being examined by the Internal Revenue Service (IRS), and we have filed appeals with the IRS for 1998-2003. We are also subject to examination in major state and international jurisdictions for the 2001-2008 tax years, for which no individually material unrecognized tax benefits exist. We believe appropriate provisions for all outstanding issues have been made for all jurisdictions and all open years. It is reasonably possible that within the next 12 months we will resolve some of the matters presently under consideration for 1998-2006 with the IRS which may increase or decrease unrecognized tax benefits for these open tax years.Settlement of those unrecognized tax benefits that affect the effective tax rate could increase earnings in an amount ranging from $0 to $500 based on current estimates.Audit outcomes and the timing of audit settlements are subject to significant uncertainty. |
| Note 4 - Inventories | Note 4 Inventories Inventories consisted of the following: June30 2009 December31 2008 Long-term contracts in progress $ 14,965 $ 14,051 Commercial aircraft programs1 19,203 19,309 Commercial spare parts, used aircraft, general stock materials and other 4,688 4,340 38,856 37,700 Less advances and progress billings (21,656 ) (22,088 ) $ 17,200 $ 15,612 1 Includes deferred production costs related to the 777 program of $843 and $1,223 and unamortized tooling related to the 777 program of $220 and $255 as of June30, 2009 and December31, 2008. Also includes work in process (including deferred production costs), supplier advances, and tooling and other non-recurring costs related to the 787 program of $4,381, $2,614 and $866 as of June30, 2009 and $3,021, $2,548 and $755 as of December31, 2008. Delta launch program inventories that will be sold at cost to United Launch Alliance (ULA) under an inventory supply agreement that terminates on March31, 2021 are included in long-term contracts in progress inventories. At June30, 2009 and December31, 2008, the inventory balance was $1,822, of which, $1,114 relates to yet unsold launches. ULA is continuing to assess the future of the Delta II program. In the event ULA is unable to sell additional Delta II inventory, earnings could be reduced by up to $90. See Note 7. Inventories included $235 subject to claims or other uncertainties relating to the A-12 program as of June30, 2009 and December31, 2008. See Note 13. |
| Note 5 - Investments | Note 5 Investments Our investments, which are recorded in Short-term investments or Investments, consisted of the following: June30 2009 December31 2008 Time deposits $ 150 Available-for-sale investments 277 $ 352 Equity method investments 906 942 Other investments 26 45 Total investments $ 1,359 $ 1,339 Available-For-Sale Investments Our investments in available-for-sale debt and equity securities consisted of the following: June30, 2009 December31, 2008 Cost or Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cost or Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Debt: Residential mortgage-backed securities $ 237 $ (53 ) $ 184 $ 285 $ (89 ) $ 196 Other debt obligations 90 (7 ) 83 172 (16 ) 156 Equity 21 (11 ) 10 Total $ 348 $ (71 ) $ 277 $ 457 $ (105 ) $ 352 Debt securities that have been in a continuous unrealized loss position for 12 months or longer are as follows: June30, 2009 December31, 2008 Fair Value Unrealized Losses Fair Value Unrealized Losses Residential mortgage-backed securities $ 146 $ (48 ) $ 28 $ (14 ) Other debt obligations 29 (7 ) 21 (6 ) Total $ 175 $ (55 ) $ 49 $ (20 ) We believe that the unrealized losses, other than those included in the table below, are not other-than-temporary. The unrealized losses are driven by market illiquidity that has caused price deterioration. We used analytic tools to assess the fundamentals of these securities to identify their individual sources of risk and potential for other-than-temporary impairment. Our assessment includes review of current market liquidity, interest rate risk, extension risk, credit rating downgrades and credit default swap spreads, as well as analysis of performance of the underlying collateral. We do not have a foreseeable need to liquidate the portfolio and anticipate recovering the full cost of the securities either as market conditions improve, or as the securities mature. Other-than-temporary impairment losses recognized in Net earnings, related to available-for-sale investments, were as follows for the three months ended June30, 2009: Total gross unrealized losses on other-than-temporarily impaired securities $ (51 ) Portion of losses recognized in other comprehensive loss (before taxes) 40 Net other-than-temporary-impairment losses recognized in Net earnings $ (11 ) The net other-than-temporary impairment losses recognized in earnings relate to credit loss, which is the difference between the present value of the cash flows expected to be collected and the amortized cost basis. The credit loss, which relates to certain residential mortgage-backed securities and certain other debt obligations, was determined through an |
| Note 6 - Liabilities, Commitments and Contingencies | Note 6 Liabilities, Commitments and Contingencies Environmental Matters For the six months ended June30, 2009 and 2008, the aggregate amounts of liabilities recorded relative to environmental matters were as follows: Environmental Liabilities 2009 2008 Beginning balance January1 $ 731 $ 679 Reductions for payments made (36 ) (38 ) Changes in estimates 47 46 Ending balance June30 $ 742 $ 687 The liabilities recorded represent our best estimate of costs expected to be incurred to remediate, operate and maintain sites over periods of up to 30 years. It is reasonably possible that we may incur additional charges because of regulatory complexities, higher than expected costs and the risk of unidentified contamination. As part of our estimating process, we develop a range of reasonably possible alternate scenarios which include highest cost estimates to remediate identified contamination at all sites based on our experience and existing laws and regulations. At June30, 2009 and December31, 2008 our reasonably possible highest cost estimate for all remediation sites exceeded our recorded liabilities by $1,206. Product Warranties The following table summarizes product warranty activity recorded during the six months ended June30, 2009 and 2008. ProductWarranty Liabilities 2009 2008 Beginning balance January1 $ 959 $ 962 Additions for current year deliveries 89 96 Reductions for payments made (122 ) (111 ) Changes in estimates 98 (37 ) Ending balance June30 $ 1,024 $ 910 Discontinued Operations As part of the 2004 purchase and sale agreement with General Electric Capital Corporation related to the sale of Boeing Capital Corporations (BCC) Commercial Financial Services business, BCC is involved in a loss sharing arrangement for losses on transferred portfolio assets, such as asset sales, provisions for loss or asset impairment charges offset by gains from asset sales. As of June30, 2009 and December31, 2008, our maximum exposure to loss associated with the loss sharing arrangement was $222 and $232. As of June30, 2009 and December31, 2008, the accrued liability under the loss sharing arrangement was $48 and $39. Commercial Aircraft Commitments In conjunction with signing a definitive agreement for the sale of new aircraft (Sale Aircraft), we have entered into specified-price trade-in commitments with certain customers that give them the right to trade in used aircraft upon the purchase of Sale Aircraft. The total contractual trade-in value was $545 and $1,045 as of June30, 2009 and December31, 2008. We anticipate that a significant portion of these commitments will not be exercised by customers. The probability that trade-in commitments will be exercised is determined by using both quantitative information from valuation sources and qualitative information from other sources. The probability of exercise is continually assessed, taking into consideration the current economic environment. Trade-in commitments, which can be |
| Note 7 - Arrangements with Off-Balance Sheet Risk | Note 7 Arrangements with Off-Balance Sheet Risk We enter into arrangements with off-balance sheet risk in the normal course of business, primarily in the form of guarantees. Third-Party Guarantees The following tables provide quantitative data regarding our third-party guarantees. The maximum potential payments represent a worst-case scenario, and do not necessarily reflect our expected results. Estimated proceeds from collateral and recourse represent the anticipated values of assets we could liquidate or receive from other parties to offset our payments under guarantees. As of June30, 2009 Maximum Potential Payments Estimated Proceeds from Collateral/ Recourse Carrying Amount of Liabilities* Contingent repurchase commitments $ 3,986 $ 3,971 $ 7 Indemnifications to ULA** 809 7 Other credit guarantees 150 139 8 Residual value guarantees 51 44 10 As of December31, 2008 Maximum Potential Payments Estimated Proceeds from Collateral/ Recourse Carrying Amount of Liabilities* Contingent repurchase commitments $ 4,024 $ 4,014 $ 7 Indemnifications to ULA** 1,184 7 Credit guarantees related to the Sea Launch venture 451 271 180 Other credit guarantees 158 145 11 Residual value guarantees 51 47 10 * Amounts included in Other accrued liabilities ** Amount includes contributed Delta launch program inventory of $438 and $813, plus $348 related to the pricing of certain contracts and $23 related to miscellaneous Delta vendor contracts at June30, 2009 and December31, 2008. Contingent Repurchase Commitments We have entered into contingent repurchase commitments with certain customers in conjunction with signing a definitive agreement for the sale of new aircraft (Sale Aircraft). Under these commitments, we agreed to repurchase the Sale Aircraft at a specified price, generally 10 years after delivery of the Sale Aircraft. Our repurchase of the Sale Aircraft is contingent upon a future, mutually acceptable agreement for the sale of additional new aircraft, and the subsequent exercise by the customer of its right to sell the Sale Aircraft to us. The repurchase price specified in contingent repurchase commitments is generally lower than the expected fair value at the specified repurchase date. Estimated Proceeds from Collateral/Recourse in the table above represent the lower of the contracted repurchase price or the expected fair value of each aircraft at the specified repurchase date. Indemnifications to ULA We agreed to indemnify ULA against potential losses that ULA may incur in the event ULA is unable to obtain certain additional contract pricing from the USAF for four satellite missions. We believe ULA is entitled to additional contract pricing. In December 2008, ULA submitted a claim to the USAF to re-price the contract value for two of the four satellite missions covered by the indemnification. In March 2009, the USAF issued a denial of that claim and in June 2009, |
| Note 8 - Debt | Note 8 Debt On March9, 2009, we filed a public shelf registration with the U.S. Securities and Exchange Commission for the issuance of an indeterminate amount of debt securities and common stock. On March13, 2009, we issued notes totaling $1,850, which included $700 bearing an interest rate of 5% due March15, 2014, $650 bearing an interest rate of 6% due March15, 2019 and $500 bearing an interest rate of 6.875% due March15, 2039. The net proceeds after deducting the discount, underwriting fees and issuance costs were $1,817. We may redeem each series of notes at any time prior to maturity, in whole or in part, upon at least 30 days notice, at a redemption price equal to the principal amount of the notes to be redeemed plus a make-whole premium, together with accrued interest on such notes to the redemption date. The notes are unsecured senior obligations and rank equally in right of payment with all our existing and future unsecured and unsubordinated indebtedness. |
| Note 9 - Postretirement Plans | Note 9 Postretirement Plans The components of net periodic benefit cost are as follows: Sixmonthsended June30 Threemonthsended June30 Pension Plans 2009 2008 2009 2008 Components of net periodic benefit cost Service cost $ 545 $ 475 $ 272 $ 237 Interest cost 1,482 1,408 741 704 Expected return on plan assets (1,868 ) (1,901 ) (934 ) (950 ) Amortization of prior service costs 121 104 60 52 Recognized net actuarial loss 324 196 162 98 Settlement/curtailment loss 2 Net periodic benefit cost $ 606 $ 282 $ 301 $ 141 Net periodic benefit cost included in Earnings from operations $ 426 $ 407 $ 207 $ 216 Sixmonthsended June30 Threemonthsended June30 Other Postretirement Benefit Plans 2009 2008 2009 2008 Components of net periodic benefit cost Service cost $ 66 $ 63 $ 33 $ 31 Interest cost 233 229 117 115 Expected return on plan assets (3 ) (4 ) (2 ) (2 ) Amortization of prior service costs (45 ) (47 ) (22 ) (24 ) Recognized net actuarial loss 47 43 23 22 Net periodic benefit cost $ 298 $ 284 $ 149 $ 142 Net periodic benefit cost included in Earnings from operations $ 302 $ 286 $ 145 $ 149 A portion of net periodic benefit cost is allocated to production as product costs and may remain in inventory at the end of the reporting period. During the six months ended June30, 2009 and 2008, we made discretionary pension contributions of $0 and $517. During the six months ended June30, 2009 and 2008, we made contributions to our other postretirement benefit plans of $8 and $8. |
| Note 10 - Share-Based Compensation and Other Compensation Arrangements | Note 10 Share-Based Compensation and Other Compensation Arrangements Stock Options On February23, 2009, we granted to our executives 7,423,242 options with an exercise price equal to the fair market value of our stock on the date of grant. The stock options vest over a period of 3 years, with 34% vesting after the first year, 33% vesting after the second year and the remaining 33% vesting after the third year. The options expire 10 years after the date of grant. The fair value of stock options granted was estimated using the Black-Scholes option-pricing model with the following assumptions: GrantDate ExpectedLife Expected Volatility Expected Dividend Yield Risk Free InterestRate Weighted- Average Grant Date Fair Value 2/23/2009 6years 39.0 % 2.4 % 2.03 % $ 11.12 We determined the expected lifeof the 2009 stock option grant to be 6 years, calculated using the simplified method in accordance with the Securities and Exchange Commission Staff Accounting Bulletin 107, Valuation of Share-Based Payment Arrangements for Public Companies. Restricted Stock Units On February23, 2009, we granted to our executives 2,144,501 restricted stock units (RSUs) with a fair value of $35.57 per share. The RSUs will vest and settle in common stock (on a one-for-one basis) on the third anniversary of the grant date. Performance Awards On February23, 2009, we also granted to our executives Performance Awards with the payout based on the achievement of financial goals for the three-year period ending December 31, 2011. The minimum payout is $0 and the maximum payout is $305. |
| Note 11 - Derivative Financial Instruments | Note 11 Derivative Financial Instruments Cash Flow Hedges Our cash flow hedges include certain interest rate swaps, cross currency swaps, foreign currency forward contracts, foreign currency option contracts and commodity purchase contracts. Interest rate swap contracts under which we agree to pay fixed rates of interest are designated as cash flow hedges of variable-rate debt obligations. We use foreign currency forward and option contracts to manage currency risk associated with certain forecasted transactions, specifically sales and purchase commitments made in foreign currencies. Our foreign currency forward contracts hedge forecasted transactions principally occurring within five years in the future, with certain contracts hedging transactions up to 2021. We use commodity derivatives, such as fixed-price purchase commitments, to hedge against potentially unfavorable price changes for items used in production. These include commitments to purchase electricity at fixed prices through 2015. Fair Value Hedges Interest rate swaps under which we agree to pay variable rates of interest are designated as fair value hedges of fixed-rate debt. Gains/(losses) of hedged items designated and qualifying in fair value hedges recognized in earnings for the six and three months ended June30, 2009 were not material. Notional Amounts and Fair Values The fair values of derivative instruments are recorded in the Consolidated Statements of Financial Position. The notional amounts and fair values were as follows: Notional amounts1 Other assets Other accrued liabilities June30 2009 December31 2008 June30 2009 December31 2008 June30 2009 December31 2008 Derivatives designated as hedging instruments Foreign exchange contracts $ 2,580 $ 1,992 $ 186 $ 26 $ (43 ) $ (39 ) Interest rate contracts 817 817 40 48 (1 ) (3 ) Commodity contracts 141 147 (101 ) (75 ) 3,538 2,956 226 74 (145 ) (117 ) Derivatives not receiving hedge accounting treatment Foreign exchange contracts 647 646 34 42 (86 ) (128 ) Warrants 21 21 18 10 Total derivatives 4,206 3,623 278 126 (231 ) (245 ) Netting arrangements (121 ) (64 ) 121 64 Net recorded balance $ 157 $ 62 $ (110 ) $ (181 ) 1 Notional amounts represent the gross contract/notional amount of the derivatives outstanding. Gains/(losses) associated with our cash flow and undesignated hedging transactions and its effect on Accumulated other comprehensive loss or earnings during the six and three months ended June30, 2009 were as follows: Sixmonths ended Threemonths ended Location gains/(losses) are recognized Effective portion recognized in other comprehensive income, net of taxes Foreign exchange contracts $ 77 |
| Note 12 - Fair Value Measurements | Note 12 Fair Value Measurements The following tables present our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs. Fair Value Measurements at June30, 2009 Total Level1 Level2 Level3 Assets Money market funds $ 3,163 $ 3,163 Available-for-sale investments: Debt: Residential mortgage-backed securities 184 $ 184 Other debt obligations 83 79 $ 4 Equity 10 10 Derivatives 157 139 18 Total assets $ 3,597 $ 3,173 $ 402 $ 22 Liabilities Derivatives $ (110 ) $ (110 ) Total liabilities $ (110 ) $ (110 ) Fair Value Measurements at December31, 2008 Total Level1 Level2 Level3 Assets Money market funds $ 2,128 $ 2,128 Available-for-sale debt investments: Residential mortgage-backed securities 196 $ 196 Other debt obligations 156 151 $ 5 Derivatives 62 52 10 Total assets $ 2,542 $ 2,128 $ 399 $ 15 Liabilities Derivatives $ (181 ) $ (181 ) Total liabilities $ (181 ) $ (181 ) Money market funds and equity securities are valued using a market approach based on the quoted market prices of identical instruments. Residential mortgage-backed securities are valued using an income approach based on prepayment speeds, yields, discount margin and collateral performance. The other debt securities are primarily valued using a market approach based on benchmark yields, reported trades and broker/dealer quotes. Derivatives include foreign currency, commodity, interest rate contracts and warrants. Our foreign currency forward contracts are valued using an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount. Commodity derivatives are valued using an income approach based on the present value of the commodity index prices less the contract rate multiplied by the notional amount. The fair value of our interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve. The fair value of warrants is based on a third-party options model and principal inputs of stock price, volatility and time to expiry. Assets that are measured at fair value on a nonrecurring basis were not material during the six and three months en |
| Note 13 - Legal Proceedings | Note 13 Legal Proceedings Various legal proceedings, claims and investigations related to products, contracts and other matters are pending against us. Potentially material contingencies are discussed below. We are subject to various U.S. government investigations, from which civil, criminal or administrative proceedings could result or have resulted. Such proceedings involve, or could involve claims by the government for fines, penalties, compensatory and treble damages, restitution and/or forfeitures. Under government regulations, a company, or one or more of its operating divisions or subdivisions, can also be suspended or debarred from government contracts, or lose its export privileges, based on the results of investigations. We believe, based upon current information, that the outcome of any such government disputes and investigations will not have a material adverse effect on our financial position, except as set forth below. A-12 Litigation In 1991, the U.S. Navy notified McDonnell Douglas Corporation (now one of our subsidiaries) and General Dynamics Corporation (together, the Team) that it was terminating for default the Teams contract for development and initial production of the A-12 aircraft. The Team filed a legal action to contest the Navys default termination, to assert its rights to convert the termination to one for the convenience of the government, and to obtain payment for work done and costs incurred on the A-12 contract but not paid to date. As of June30, 2009, inventories included approximately $585 of recorded costs on the A-12 contract, against which we have established a loss provision of $350. The amount of the provision, which was established in 1990, was based on McDonnell Douglas Corporations belief, supported by an opinion of outside counsel, that the termination for default would be converted to a termination for convenience, and that the best estimate of possible loss on termination for convenience was $350. On August31, 2001, the U.S. Court of Federal Claims issued a decision after trial upholding the governments default termination of the A-12 contract. In 2003, the Court of Appeals for the Federal Circuit, finding that the trial court had applied the wrong legal standard, vacated the trial courts 2001 decision and ordered the case sent back to that court for further proceedings. On May3, 2007, the U.S. Court of Federal Claims issued a decision upholding the governments default termination of the A-12 contract. We filed a Notice of Appeal on May4, 2007 with the Court of Appeals for the Federal Circuit. On June2, 2009, the Court of Appeals rendered an opinion affirming the trial courts 2007 decision sustaining the governments default termination. We believe that the ruling of the Court of Appeals upholding the default termination is erroneous and in conflict with the governing law. We have obtained an extension of time until August14, 2009 in which to file a Petition for Rehearing and for Rehearing En Banc in the Court of Appeals for the Federal Circuit, and we expect to file such a petition in the Court of Appeals for the Federal Circuit by that date. The timing for a ruling on the Petition is |
| Note 14 - Business Segment Data | Note 14 Business Segment Data Effective January1, 2009,certain programs were realigned between IDS segments. Business segment data for all periods presented have been adjusted to reflect the realignment. Our primary profitability measurements to review a segments operating results are earnings from operations and operating margins. See page 5 for a Summary of Business Segment Data, which is an integral part of this note. Intersegment revenues, eliminated in Unallocated items and eliminations, are shown in the following table. Sixmonthsended June30 Threemonthsended June30 2009 2008 2009 2008 Commercial Airplanes $ 402 $ 333 $ 211 $ 66 Boeing Capital Corporation 44 41 21 20 Total $ 446 $ 374 $ 232 $ 86 Unallocated items and eliminations includes costs not attributable to business segments. Unallocated items and eliminations also includes the impact of cost measurement differences between Generally Accepted Accounting Principles and federal cost accounting standards as well as intercompany profit eliminations. The most significant items not allocated to segments are shown in the following table. Sixmonthsended June30 Threemonthsended June30 Unallocated items and eliminations 2009 2008 2009 2008 Share-based plans $ (116 ) $ (45 ) $ (59 ) $ (15 ) Deferred compensation (46 ) 81 (69 ) 20 Pension 45 (143 ) 22 (76 ) Postretirement (44 ) (40 ) (21 ) (20 ) Capitalized interest (27 ) (27 ) (12 ) (14 ) Other (81 ) 42 (15 ) 28 Total $ (269 ) $ (132 ) $ (154 ) $ (77 ) Assets June30 2009 December31 2008 Commercial Airplanes $ 20,497 $ 18,893 Integrated Defense Systems: Boeing Military Aircraft 5,995 5,746 Network and Space Systems 7,587 7,177 Global Services and Support 3,891 3,559 Total Integrated Defense Systems 17,473 16,482 Boeing Capital Corporation 6,319 6,073 Other 1,454 1,207 Unallocated items and eliminations 11,969 11,124 Total assets $ 57,712 $ 53,779 Liabilities Commercial Airplanes $ 16,556 $ 17,141 Integrated Defense Systems: Boeing Military Aircraft 3,616 3,675 Network and Space Systems 1,512 1,239 Global Services and Support 1,546 1,352 Total Integrated Defense Systems 6,674 6,266 Boeing Capital Corporation 3,859 4,115 Other 828 845 Unallocated items and eliminations 29,461 26,554 Total liabilities $ 57,378 $ 54,921 |
| Note 15 - Subsequent Events | Note 15 Subsequent Events On July7, 2009, we announced an agreement to purchase the business, assets and operations of Vought Aircraft Industries, Inc.s (Vought) 787 business conducted at North Charleston, SC. In connection with the acquisition, we will provide cash consideration currently expected to approximate $580 (subject to post closing adjustments) and release Vought from its obligation to repay amounts of $422 previously advanced by us. Voughts 787 business produces aft fuselage, including the fabrication, assembly and systems installation, for the 787 program. This acquisition will be reported in our Commercial Airplanes segment and we expect that the transaction will close in the third quarter following the satisfaction of customary closing conditions. Management expects to complete the purchase price allocation for this acquisition by the end of 2009. |
| Document Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Amendment Description | N.A. |
| Document Period End Date | 2009-06-30 |
| Entity Information (USD $) | ||
| 6 Months Ended
Jun. 30, 2009 | Jun. 30, 2008
| |
| Entity [Text Block] | ||
| Trading Symbol | BA | |
| Entity Registrant Name | BOEING CO | |
| Entity Central Index Key | 0000012927 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Well-known Seasoned Issuer | Yes | |
| Entity Current Reporting Status | Yes | |
| Entity Voluntary Filers | No | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 726,432,299 | |
| Entity Public Float | $46,800,000,000 |
